Future of the Construction Equipment Market in Australia to 2015
Furthermore, over 150 companies deal with imports and exports of construction equipment in the country.
Supported by a boom in construction activity across the country, the construction equipment market enjoyed strong revenue growth during 2005â€“07. A high level of investment in the industrial sector drove the growth of the equipment and machinery markets, while a sharp rise in income, employment and company earnings encouraged the growth of the commercial, office and industrial construction markets. However, market conditions weakened following the financial crisis due to a dramatic decline in the non-residential construction market.
The material handling equipment category was the industryâ€™s largest category in 2009, and is forecast to register substantial growth over the 2010â€“15 forecast period. The earth-moving equipment category was the second largest, followed by tunneling and drilling equipment, concrete equipment, road construction equipment and construction vehicles.
Australiaâ€™s Construction Industry
The Australian construction industry consists of 320,000 enterprises, which employed nearly 10% of the national workforce at the end of 2008. However, Australia is currently experiencing a shortage of skilled workers, which has led to further delays in Australian construction projects.
The global financial crisis slowed the expansion of the Australian construction industry in 2009, largely due to shortages of labor and capital, and high construction costs. This has led to the postponement or cancellation of tenders and, in some cases, canceled planned project developments. However, despite the global financial slowdown, Australia has avoided recession and one of the major factors behind this was the resilience of the labor market.
Government Economic Stimulus Packages to Drive Australian Construction
In February 2009, the Australian government announced an economic stimulus package, of which a substantial amount was allocated to infrastructure construction, with the majority invested in social projects, including schools and public housing.
In 2009, the Australian government began to encourage the nationwide construction of greener homes and offices, and created the Green Building Fund to reduce the amount of energy consumed by existing commercial buildings. Substantial financial aid was also allocated to research institutions that study ways to reduce carbon emissions, and also for the renovation of existing buildings and infrastructure improvement.
Australiaâ€™s Construction Equipment Industry Set to Recover
There are more than 400 construction projects worth US$284.7 billion announced or scheduled for completion in the next five years. As a result, the construction equipment industryâ€™s turnover is set to grow by nearly 10% over the forecast period. During this time, the consumption, export and import of construction equipment are also expected to improve.
World Market Intelligence is a premium information and marketing solution company focused on providing high quality information and software solutions to drive business success. World Market Intelligence publishes in-depth strategic intelligence reports across the construction and retail space.
Our reports draw on in-depth primary and secondary research, proprietary databases and high quality analysis from our expert teams. Data and analysis at the company, country and industry level includes competitor and market data, valuations, trends and forecasts, making World Market Intelligence a must for anyone considering entering the market as well as those currently operating in it.
To purchase this detailed report, please click here.